Monday, April 14, 2008

Employee leasing

One of the better ideas I've come across:

A Modest Proposal for Freedom in Our Time
By L. Reichard White
Exclusive to _The Libertarian Enterprise_

Suppose a company, called perhaps "Liberty Leasing" (L.L.), couldapproach an employer with the following proposition: "I can take overyour legal liability for employing your worker, John Freeman, and yourtotal cost of employing him will be 5% less than it is now." At thesame time, suppose Liberty Leasing (L.L.) could give John Freeman a 15%increase in take-home pay --- and could make 10% for itself as well.

Full article here.

I'm not sure if this is possible in most areas, however, as the state may create/already have created a lot of legal hurdles to prevent this from happening.

The closest thing I've experienced to the above concept is sub-contracting, where you work for a company or companies but no taxes are taken out of your pay (as you are expected to pay them yourself), the state gives you a business number and you are expected to comply with alot of their regulations on business. I would not really call sub-contracting something like operating a business, though.

However, as a small time operator you may get away with not telling the state anything or having to pay any taxes on your wage. Many sub-contractors or 'sole-traders' do this as the taxes they would have to pay are too burdensome (as they don't get any of the legal protections that an employee would).


Post a Comment

<< Home